On the heels of the recent investigation from the Insurance Commissioner of California on MetLife’s practices regarding payment of death benefits; I am writing this article to explain how important it is to prevent lost life insurance by keeping your beneficiaries informed of where your life insurance information is located.
To take care of your family with life insurance is a great thing to do. To allow your beneficiaries to be proactive if they cannot find the information is even better. There have recently been inquiries into the practices of some large insurance companies on how they pay out on death benefits of life insurance.
Unless the insurance companies call every beneficiary when an insured person stops paying their premiums there is no way of finding out if the person has passed away or simply does not want the policy anymore.
To the credit of the insurance companies, they really are not doing anything wrong. They simply do not proactively and aggressively try to find the reason an individual stopped paying their premiums. Due to this, many life insurance policies can go lost or unclaimed by the beneficiaries.
There has to be a central database where an individual can go to and find, with certainty, their loved ones life insurance policy. This database should be used by all life insurance companies and promoted to all agents and brokers. They should emphasize the importance keeping good records and their beneficiaries informed. This would not only make the consumer of life insurance comfortable knowing their beneficiaries will receive their death benefits, but it will also bring confidence back to the insurance industry showing good faith that they are truly concerned with their customers.
FindYourPolicy.com is a central database where an individual can register the company name they have life insurance with, and it’s free. You can guarantee your family members receive the benefits you worked so hard to give them. Tell your insurance company and your agent about this very important website. It is a consumer protection service they will not regret promoting.
Think about it. As important as life insurance is, don’t you think it is just as important to make sure your family members find it when the time comes.
Until next time Michael Hartmann
Always remember our Mission Statement
“To be the best in serving our members by providing peace of mind that their beneficiaries receive their inheritance”